Author Topic: What's A Good Vanguard Small Cap Fund?  (Read 7766 times)

heybro

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What's A Good Vanguard Small Cap Fund?
« on: April 29, 2016, 12:47:14 AM »
What's a good Vanguard Small Cap Fund?

wienerdog

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #1 on: April 29, 2016, 03:35:47 AM »
It depends on your definition of good.  Betterment and other robo advisors use VB because of the lower fee of 0.08%.  VIOO is also small cap but at 0.15% fee.

VB holds 1501 stocks VIOO holds 603.
Median market cap is $3.1 billion for VB and $1.5 billion for VIOO.
Price to book is 2.2x for VB and 2.1x VIOO.

Academics say the lower the market cap will preform better over time.  Price to book is a wash on the two.

If you're looking for mutual funds use VSMAX for VB or VTMSX for VIOO. 


Tyler

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #2 on: April 29, 2016, 11:15:43 AM »
I personally use VB, but it depends on what you're looking for.

VB has high liquidity and low fees, which is great.  However it's not actually strictly small cap, and holds quite a few mid caps as well.  This keeps the capital gains down, as it does not necessarily sell a company the moment it grows out of the small cap category.  I also like how it complements a total market fund like VTI, which also holds a decent number of mid caps.  Mix them together, and you get balanced exposure to large, mid, and small without needing a separate mid cap fund.

If you're not married to Vanguard funds, FSSPX, SCHA, IJR, and SLY are also good alternatives. 




PhysicianOnFIRE

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #3 on: April 30, 2016, 06:34:48 PM »
I have VSIAX (small cap value ER 0.09) in my Roth IRA and VSCIX (small cap index ER 0.08) in my 401(k).

I consider them to be "good" based on having low fees and being passive index funds.

Best,
-PoF

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #4 on: May 07, 2016, 11:17:32 AM »
I have VTWG, but its performance could best be described as "donkey balls". Was thinking about moving to something less volatile, like VBR.

wienerdog

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #5 on: May 08, 2016, 11:40:46 AM »
VTWG is weighted towards growth. 57% small cap growth and 11% mid cap growth.  VBR is weighted a little more towards value 32% small value and 14% mid value. 

pha999

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #6 on: May 13, 2016, 09:52:01 AM »
I use the vanguard small cap value admiral shares from vanguard. It has the lowest fees and also comes in a ETF version if you prefer ETFs over the mutual fund version.

I went with this fun because Rick Ferri uses it for his clients and recommended in his one of his portfolios in the all about asset allocation book.

Cactus Pants

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #7 on: May 13, 2016, 03:37:29 PM »
Is there a clear advantage to VB over VTWO (or vice-versa?)

Tyler

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #8 on: May 13, 2016, 03:40:03 PM »
Is there a clear advantage to VB over VTWO (or vice-versa?)

They track the same basic market segment but use different underlying indices.  Both are fine, but VB has half the expense ratio. 

Cactus Pants

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Re: What's A Good Vanguard Small Cap Fund?
« Reply #9 on: May 13, 2016, 04:26:34 PM »
Is there a clear advantage to VB over VTWO (or vice-versa?)

They track the same basic market segment but use different underlying indices.  Both are fine, but VB has half the expense ratio.
Awesome, thanks.